Fort Worth daily gazette. (Fort Worth, Tex.) 1882-1891, 1887-04-09
DEBTS OF CITIES AND TOWNS.

DEBTS OF CITIES AND TOWNS.
Whereas, in some of the cities and
towns of this state there is an existing
Indebtedness against the same neCessi-
tating the collection of an excessive tax
upon the people to pay the interest and
provide sinking fund as required by
law for the ultimate eXtinguishment of
said Indebtedness;
And, whereas, it is believed satisfaC-
tory adjustment, settlement aud Compro-
mise of much of said Indebtedness could
be effected between said cities and towns
and the holders of such Indebtedness if
duly authorized by Law, by which such
Indebtedness would be greatly reduced
and taxation necessary to meet the same
greatly Iessened in amount;
And, whereas, the accomplishment of
this adjustment, settlement and COmprO-
mise is great public necessity which re-
Quires the rules to be suspended that this
act may become law at the present SEES
sion of the Legislature, and that 1t take
effect and be in !OrCe from and after its
passage. Therefore,
Section l. Be it enacted by the Legisla-
ture of the state of Texas: That the
mayor and board of aldermen of any city
or town in the state are hereby author
lied and empowered, by resolution or Or
dinance of said board of aldermen reCiting
the caption of this act and adopting the
same, to compromise and fund any exist
ing valid Indebtedness by such city or
town issued, whether bonded or floating,
and the coupons due upon the bonded
debt; and for this purpose they are hereby
authorized and empowered to issue new
bonds, in denominations of not less
than $50 nor more than $1,000,
in their discretion, with interest coupons
payable semi-annually at the office of the
State Treasurer or at such other place as
said boards of aldermen shall provide;
said new bonds to become due and paya-
Bile in not exceeding thirty years, and to
bear such rate of interest, not exceeding
6 per cent. per annum, as in their discre-
ton may best Subserve the purpose in
tended by this act.
Sec. 2 No compromise shall be made
under the provisions of this act by which
any debt shall be funded which is now
barred by the statute of limitations, or
which may be barred at the time of such
compromise.
Sec. 8. The new bonds thus issued by
any city or town shall be exempt from
the payment of all taxes levied by such
city or town, and the taxes levied to pay
said new bonds may be paid in said bonds
or coupons thereof if matured; provided,
that said coupons and bonds shall only be
received in payment CT taxes levied for
the purpose of paying such bonds and
coupons.
Sec. 4. That the mayor and board of
aldermen shall cause to be prepared the
necessary blank bonds to give effect to
the provisions of this act, the cost of
which shall be paid out of the treasurer
Treasury of such city or town; said
bonds when issued by any city or town
shall be signed by the mayor and attested
by the secretary Cor recorder If there be
no secretary, with the seal of such city
or town affixed; and such new bonds,
whether issued by any city or town, shall
be registered in the office of the State
Comptroller.
Sec. ). Such new bonds may be ex-
changed for the old bonds, or they may
be sold and the proceeds applied to the
purchase of such old bonds; provided,
that no delivery of such new shall take
place unless contract has already been
entered into for the purchase Of a cor
responding amount of such old bonds;
and provided further, no bonds issued
under this act shall be sold at less than
par, and each bond shall be made to bear
the lowest rate of interest that will give
a par value.
Sec. 6. That all laws now in force pro-
viding for the collection of taxes for the
payment of the principal and interest Of
such existing bonds shall apply and be in
force for the collection of taxes for the
payment of the principal and interest of
such new bonds: Provided, that the
sinking fund may be used in the purchase
and cancellation OF such new bonds when
ever the same can be bought at not more
than their par value.
Sec. Z. The object and intention of this
act being to enable the cities or towns in
this state which have granted subsidy
bonds to railroads or other works OF inter
nal improvements created any other in
debtedness whatever, whether bonded or
floating, to compromise the same, and
thereby reduce the burden of taxation, it
is hereby declared, as an induCement to
the holders of said bonds to accept the
compromise, that whenever such COM
promise shall be entered into and &C
copied in good faith either by the hold
ers of the present bonds or by any per
sons purchasing such new bonds as pro-
vided in this act, that all laws now in
force or which may hereafter be in force
for the assessment and collection ct the